Understanding the Financials: Breaking Down the Costs of Opening a Scooter’s Coffee Franchise

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Drive-thru coffee shops have become a familiar sight at busy intersections, driven by the rising demand for quick, high-quality coffee. Scooter’s Coffee is riding this wave. If you’re considering joining the brand, it’s important to grasp the financial investment required. Let’s explore the Scooter’s Coffee franchise costs, which are contained in the Scooter’s Coffee Franchise Disclosure Document, to help you make an informed decision.

The Initial Scooter’s Coffee Investment

Opening a Scooter’s Coffee franchise requires a solid financial commitment ranging from $954,650 to $1,523,400. The total depends on factors such as location, site-specific expenses, and whether you’re building from scratch or modifying an existing space. Let’s take a look at how much a Scooter’s Coffee franchise costs

Franchise Fee: $40,000

The franchise fee is a non-refundable payment you make to join the Scooter’s Coffee franchise system. This fee covers the cost of accessing the brand’s proven business model, proprietary systems, and ongoing support.

Initial Opening Support Fee: $20,000

This fee provides you with initial support and training to get your franchise off the ground. It includes access to resources like a comprehensive training program, on-site support during your opening, and guidance from experienced franchise staff to ensure you’re prepared to operate the business seamlessly.

Construction & Site Improvements: $639,100 – $974,350

One of the largest Scooter’s Coffee franchise startup costs is construction and site improvements, which include building costs, plumbing, electrical work, and site preparation. Depending on the location and condition of the space, these costs can vary significantly. For example, building from the ground up tends to be more expensive than leasing and modifying an existing structure.

However, Scooter’s Coffee provides dedicated support through every step of the process, including site selection and real estate guidance. Our team works alongside you to navigate these challenges and ensure you find the best location to set your business up for success.

Equipment, Fixtures & Furniture: $132,200 – $195,200

To serve coffee that keeps people coming back, you need the best equipment. Think espresso machines, grinders, point-of-sale systems, and counters—these are the essentials that help your shop run smoothly and give customers a top-notch experience.

Architectural & Engineering Fees: $26,150 – $72,100

Hiring professional architects and engineers is essential to create a functional and aesthetically pleasing space that meets local regulations. The fees cover all the essentials—blueprints, permits, and getting your space up to code. They’re designed to ensure your layout is not only compliant but also efficient for smooth operations and great customer flow.

Signage: $31,800 – $65,150

Your signage is often the first thing potential customers will notice, so it’s crucial for making a lasting first impression. Effective signage isn’t just about branding—it helps guide customers to the right areas, including where to enter and exit. Signage costs can range based on the size and type of sign you choose, but it’s a necessary expense for visibility, brand recognition, and smooth customer flow. 

Opening Inventory & Supplies: $27,800 – $30,800

Before you start serving customers, you’ll need to stock up on inventory and supplies—think coffee beans, syrups, cups, napkins, and everything else to get your operations going. This initial inventory cost ensures you’re ready to serve your first customer on opening day.

Additional Funds (3 Months): $16,000 – $86,000

Opening a franchise means you’ll need extra funds to cover expenses like rent, utilities, staff pay, and inventory until the business becomes profitable. It’s a good idea to have at least three to six months’ worth of reserves, as it can take some time to establish a consistent cash flow.

Minimum Financial Requirements for Prospective Franchisees

At Scooter’s Coffee, we require franchisees to have a minimum net worth of $500,000 and liquid capital of $250,000. This ensures that you have the financial stability to manage the initial costs and any unforeseen expenses as you start your new business.

Ongoing Financial Commitments

Once your franchise is up and running, there are a few ongoing fees and expenses you’ll need to keep in mind as part of your ongoing relationship with our brand.

Royalty Fee: 6% of Gross Sales

As a Scooter’s Coffee franchisee, you’ll pay a 6% royalty fee on your gross sales. This fee provides continued support from our team, access to brand assets, and ongoing training. It’s a vital part of the franchise system, ensuring you have the tools and resources needed to successfully grow your business while upholding the brand’s high standards.

Advertising Fee: 2% of Gross Sales

Franchisees are also required to contribute 2% of their gross sales to a national advertising fund. This helps promote the brand on a broader level, driving awareness and attracting customers to all locations, including yours.

Other Potential Ongoing Expenses

In addition to the royalty and advertising fees, there are a few other regular expenses you’ll need to budget for:

  • Rent/Lease Payments: Depending on your location, your rent or lease payments will be an ongoing cost.
  • Payroll and Labor Costs: Staffing your location is crucial to providing excellent customer service.
  • Utilities: You’ll need to account for electricity, water, internet, and other utilities.
  • Maintenance and Repairs: Keeping your equipment and store in top shape requires ongoing maintenance and repairs.
  • Insurance: You’ll need various types of insurance to protect your business and ensure you’re in compliance with local regulations.

Potential Coffee Franchise Revenue and Profitability

Scooter’s Coffee franchise financial disclaimer: There’s no guarantee of specific income or profit. Success varies based on factors like location, operational efficiency, and market conditions.

Several key factors can impact the potential revenue and profitability of your coffee franchise:

  • Location: High-traffic areas or locations near major intersections can lead to higher sales, while suburban locations may have lower customer volume.
  • Efficiency: The more efficient you are in managing operations, the better your margins. Focus on minimizing waste, optimizing staffing, and controlling costs.
  • Staffing: Well-trained, motivated staff members are essential to creating a positive customer experience and driving repeat business.
  • Marketing: Your efforts in marketing locally can make a significant difference in attracting and retaining customers. Building relationships in the community is key!

With a strong focus on operational efficiency and a great location, owning a Scooter’s Coffee franchise offers many opportunities. Keep in mind, there are many variables that influence financial results.

Interested in learning more? Visit the Scooter’s Coffee website or request a copy of the Franchise Disclosure Document (FDD) to get all the details on what it takes to open your own location.